Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, September 22, 2009
Beware of Negative Stock Market Divergences / Stock-Markets / Stock Index Trading
Last week, I spoke about Divergences and their importance.
Some technicians use a 30 day Momentum indicator in order to spot divergences. Although it is not one of my favorites, it does offer a divergence warning for investors.
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Tuesday, September 22, 2009
Stock Market "Buy The Dip" Mentality Fully Entrenched / Stock-Markets / US Stock Markets
Anyone following the markets knows there is a huge underlying bid.
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Tuesday, September 22, 2009
SPX Stocks Index Topping or Breaking Out? / Stock-Markets / Stock Index Trading
While there certainly could be a top here I think that to call one at this point would be pure speculation and guesswork. Picking a top is not advisable. There is some evidence that we are seeing the acceleration of the bull trend rather than its fading.
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Tuesday, September 22, 2009
Wealthbuilder Quarterly Stock Market Brief and Stock Pick / Stock-Markets / Dow Theory
The monthly charts of the Dow Industrials and the Dow Transports are most revealing as they allow one immediately get a long term perspective on the current market situation. The Dow 30 hit an intraday high in October of 2007 touching 14,198. The Dow 20 got there in May 2008 hitting 5,536.
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Monday, September 21, 2009
Major Technical Forces Are About to Collide in the S&P 500 Stocks Index / Stock-Markets / Stock Index Trading
The S&P 500 has seen remarkable recovery from the lows that were seen earlier this year. However, all of that may come to an end as we fast approach a strategic level for this market. There are two major technical indicators that are colliding at a crucial point and time. Unless you're aware of these indicators, it could be very expensive.
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Monday, September 21, 2009
What GE's Chart Tells About SPY / Stock-Markets / Stock Index Trading
For the most part General Electric (GE) and the S&P 500 Depository Receipts (AMEX: SPY) exhibit very similar patterns during the past year or so. However, upon a closer look, we notice that GE actually peaks slightly before the peak in the SPY. After the March rally, GE peaked on May 8, while the SPY peak on June 11.
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Monday, September 21, 2009
Stock Market Strenuously Overbought But ...? / Stock-Markets / Stocks Bear Market
Inquiring minds are once again reading excellent commentary by John Hussman. Please consider Strenuously Overbought.
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Monday, September 21, 2009
Ratcheting Stocks Higher Against Precious Metals / Stock-Markets / Stocks Bear Market
It appears our self-serving bureaucracy thinks they can keep fooling the markets indefinitely, where now they have resorted to attempting to ratchet stocks higher against precious metals. Of course the funny part of it all is as you know from our last meeting precious metals charts are telling us it will take hyperinflation to keep equities moving higher however, as the dollar ($) decline is getting stretched to say the least. Price managers don’t want stocks heading lower into October however, for fear of a panic that gets out of control. So, they come in and squeeze the shorts at every opportunity, taking advantage of the seasonal inversion characterizing the trade at the moment.
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Monday, September 21, 2009
Inflation Pressures Rising Again / Stock-Markets / US Dollar
Several months ago I began to lay out an asset allocation road map. In a nutshell, the US Dollar remains the key asset to follow, and as long as the Dollar remains in a downtrend, then commodities should outperform equities with Treasuries bringing up the rear. In those articles, I never really stated why I like commodities over equities.
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Monday, September 21, 2009
Stock Market Crash and Market Efficiency / Stock-Markets / Financial Crash
The share market crashes that reverberated around the world confirmed the prejudices of many (some of whom are paid to know better) as to the irrationally of markets. There was much gleeful parroting of Keynes' misleading comments stating that share markets were nothing but casinos that graphically demonstrate the excesses of capitalism. Of course there has been a great deal said in recent years about the efficiency of markets and the cause of fluctuations. Since the 1960s the efficient-market hypothesis has held sway among a great many people. This thesis holds that markets are extremely efficient in the sense that all information about the past, the present and the future are swiftly built into share prices.
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Sunday, September 20, 2009
New Research Suggests Stocks and Warrants Going Higher, Gold less so / Stock-Markets / Financial Markets 2009
New research by Morgan Stanley Europe and Merrill Lynch Asia confirms old moving average based research by Stan Weinstein that the on-going upswing in the S&P 500 and other market indices around the world quite possibly has much further to go in this current bull run albeit with some volatility along the way. That could well have negative implications for the short-term price of gold bullion but, fortunately for the ‘gold bugs’ to be found in every room, continuing bright prospects for the stocks and warrants of gold and silver mining and royalty companies are expected.
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Sunday, September 20, 2009
This Week's Stock Market Trade: Gee, Let’s Buy GE Options / Stock-Markets / Options & Warrants
Stock market trend: Up
Market Pulse - It always nice when the market geniuses catch up to one of your trades. Case in point is the action last week in GE call options and the follow-up article in this week’s Barron’s (“A Bullish Sign for GE). Back in late February just as the market was approaching its March low, I put indicated in the newsletter that I was stocking up on GE 2011 leaps.
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Sunday, September 20, 2009
Stock Market Investor Bullish Perceptions, It's Odd, But True / Stock-Markets / Stock Market Sentiment
Market participants remain all giddy about the bullish developments of the past months. Yet, one year ago, a level of 1200 on the S&P500 had everyone in a panic, and this was before a 20% two week plunge. On Friday, with the SP500 closing at 1068, everyone is now ecstatic and most investors see nothing but blue skies ahead even though the fundamental outlook is just as muddled as 12 months ago. It's odd, but true. Two different investor outlooks but essentially the same level on the S&P500. So what has changed?
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Sunday, September 20, 2009
Complacency Returns to the Stock Market / Stock-Markets / Volatility
Brian Hunt writes: Volatility, we hardly knew ye.
Back in 2006, we pointed to depressed levels of the VIX as an excuse to buy cheap "portfolio insurance" against the likes of terrorist attacks and government-sponsored disasters.
Sunday, September 20, 2009
Stock Market Outlook for 21st September / Stock-Markets / Stock Index Trading
Here is our outlook for the markets going into 9/21.
The thing about writing a weekly article is that the market doesnt always change directions on a weekend.
That being said, lets take a look at our Timing Indicator:
Sunday, September 20, 2009
Stocks Bear Market Rally, What I Discovered in a Newspaper from September 1930 / Stock-Markets / Stocks Bear Market
Tom Dyson writes: "The economy is showing unquestionable signs of life," says Labor Secretary Davis on September 12, 1930...
The stock market collapsed 48% in the Great Crash of 1929. But by 1930, it had found a bottom and started rallying again. This rally erased all the pessimism generated by the Great Crash and enticed investors back into the stock market again.
Sunday, September 20, 2009
Global Stock Markets Scale Fresh Highs on Investor Realisation of Economic Recovery / Stock-Markets / Financial Markets 2009
Marking the one-year anniversary of the Lehman Brothers demise, risky assets last week again marched higher to the tune of economic data supporting the argument of a global economic recovery. A realization among investors that the economic transition from recession to recovery was gaining momentum, resulted in many global stock markets scaling fresh peaks for the year.
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Saturday, September 19, 2009
Alternative Financial Market and Economic Headlines for 2009 / Stock-Markets / Financial Markets 2009
Now a year removed from the Lehman Brothers failure and as memories of the tumultuous events of late-2008 and early-2009 begin to fade, an eerie complacency settling in over financial markets that millions of investors hope does not portend a storm to come, in order to gain more perspective on what exactly has transpired over the course of the last year or two - and over the last decade or two - it seemed like a good idea to reflect on how things could have been this year if, years ago, many decisions had been made very differently.
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Saturday, September 19, 2009
Stock Market Close to a Cycle Shift? / Stock-Markets / Stock Index Trading
What index is 2.35% away from closing a very important gap that occurred in October of last year?
The answer: The SPY (ETF) with a gap that will be closed when the SPY reaches 109.68.
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Saturday, September 19, 2009
Overbought Stock Market Warning / Stock-Markets / Stock Index Trading
Forwarned is forearmed - The Stock Market is now further climbing up this fall of fear. The Stock Market is taking it’s time to complete a wave C of 4 of some degree we assume for now. In earlier posts we published a time target between mid and end of September 2009. We have reached the minimum target in price and time for some time, and the trend is still in tact.The market is overbought, so be prepared the market can turn at any point in time. A top could already have set in.
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